DDMRP relative priority for production execution: an assessment by simulation

Nuno Octávio Fernandes (), Matthias Thürer () and Sílvio Carmo Silva ()
Additional contact information
Nuno Octávio Fernandes: Instituto Politécnico de Castelo Branco
Matthias Thürer: Chemnitz University of Technology
Sílvio Carmo Silva: University of Minho, Campus de Gualtar

Operations Management Research, 2024, vol. 17, issue 4, No 2, 1244-1256

Abstract: Abstract Demand-Driven Material Requirements Planning (DDMRP) was designed to improve supply chain performance in complex and uncertain environments. Literature on the topic suggests that production replenishment orders should be dispatched for execution based on the buffers’ penetration ratio of the products ordered, which is a measure of protection against stock depletion. However, the actual performance impact of this dispatching rule remains largely unknown as is the impact of different lot transfer policies. A simulation analysis was carried out to compare the performance of the lowest net flow position, the highest buffer penetration ratio, earliest operation due date and first-come first-served rules under synchronized and unsynchronized lot transfer policies. Results of our study show that the choice of dispatching rules is contingent on the setting of top-of-yellow and top-of-green, which determine the re-order quantity, and on the demand mix of products. The earliest operation due date rule shows great potential to outperform the rule typically applied in a DDMRP context specifically for a high demand mix. These findings provide important insights for improving industrial practice and for guiding future research on DDMRP.

Keywords: Production planning and control; DDMRP; Execution priority; Simulation. (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12063-024-00503-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:opmare:v:17:y:2024:i:4:d:10.1007_s12063-024-00503-2

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/12063

DOI: 10.1007/s12063-024-00503-2

Access Statistics for this article

Operations Management Research is currently edited by Jan Olhager and Scott Shafer

More articles in Operations Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().